EUR/USD has rallied sharply so far this week, from below 1.37 during last Friday’s (4/4) session to almost 1.39 during Wednesday ‘s (4/10) US session. (eurusd 4h chart, 4/10) The 4H chart shows a pair that has broken above a falling channel that formed after EUR/USD retreated from the 2014-high at 1.3966. This price action suggests bullish continuation, as it also cleared above the 200-100-50 moving averages in the 4H chart, and above the 1 month high at 1.3875. Although the mode is bullish, the 4H chart shows overbought stochastic levels. We might be looking at an intra-session or short-term, a week or 2, of correction/consolidation against this week’s upswing. If the market is to remain bullish, the 1.3815-20 area, which was a recent resistance area, can now turn back to support. However, a break below 1.3775 might keep the EUR/USD in sideways consolidation mode. At this point, only a break below 1.3640 should open up a bearish outlook in the medium term. The daily chart shows that the prevailing trend is indeed bullish. It also shows that a if the market breaks below 1.3640, it would also clear a rising channel, which also suggests a bearish outlook. (eurusd daily chart 4/10) Fan Yang, CMT is a forex trader, analyst, educator and Chief Technical Strategist for FXTimes. Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.